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When going directly to the consumer it faces a really high Subscriber Acquisition Cost (SAC) and; when partnering with cable and satellite networks the problem becomes one of profitability with decreasing Average Revenue Per User (ARPU) within this channel.
I like the statement made by Mr. Ramsay "We're not really in the DVR business" TiVo is not a recording device but a home entertainment device and there it lies the whole business model problem; the company hasn't been able to define whether it is a hardware manufacturer, software vendor or advertising channel. My personal decision would be to become an Operating System Platform or Software (+ hardware design-only) Provider; this has enormous implications...
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Common topics in this essay:
- Strategic Inflection: TiVo in 2005
- Strategic Inflection: TiVo in 2003
- TiVo's problem rests in its inability to convince consumers to change their television consumption habits. Improper targeting and positioning have led to an ineffective product, price-point and promotion strategy that has stranded TiVo in the chas...
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